The Karnataka High Court has struck down the Karnataka Police (Amendment) Act banning online gaming and betting.
The Amendment Act came into force on October 5, it includes all forms of wagering or betting, including in the form of tokens valued in terms of money paid before or after the issue of it. It has banned electronic means and virtual currency, electronic transfer of funds in connection with any game of ‘chance’. However, there is no ban on lottery, or betting on horse races on any racecourse within or outside Karnataka. The statement of objects and reasons states: “It is considered necessary further to amend the Karnataka Police Act, 1961 Karnataka Act 4 of 1964, to provide for effective enforcement of the provisions of this Act by making offences under Chapter VII and under section 90, 98, 108, 113,114 and 123, as cognizable offence and non-bailable except section 87, which is made cognizable and bailable.”
Further, “Include the use of cyberspace including computer resources or any communication device as defined in the Information Technology Act, 2000 in the process of gaming, to curb the menace of gaming through the internet, mobile app, to enhance the punishment for gaming for the orderly conduct of citizens and to wean them away from the vice of gambling.”
The petitioners had argued that there is a distinction between Game of chance and game of skill. “Game of chance alone can be regulated to the point of banning by state authorities. Conversely to this, state governments have no jurisdiction to ban games of skill. This distinction has been in existence for years.
The division bench of Chief Justice Ritu Raj Awasthi and Justice Krishna S Dixit pronounced the verdict. “The consequences of striking down the provision shall follow”.
ALL INDIA GAMING FEDERATION A SOCIETY REGISTERED UNDER THE SOCIETIES REGISTRATION ACT 1860 REPRESENTED BY ITS GENERAL SECRETARY AND AUTHORISED SIGNATORY MR SUNIL KRISHNAMURTHY vs SRI.C ARYAMA SUNDARAM, SENIOR COUNSEL A/W
CITATION: 2022 TAXSCAN (HC) 159
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